Loss of Ukrainian operating banks UAH 900 mln up in Oct

The total loss of 100 operating Ukrainian banks reached UAH 12.6 billion in January-October 2016, including UAH 900 million in October alone, the National Bank of Ukraine (NBU) said last week.

"In January-October 2016 the loss of operating banks plunged by 76.8% year-over-year… mainly thanks to a decrease of payments to reserves to cover possible losses from active transactions by 60.4%," the NBU said.

The central bank said that UAH 39.6 billion were sent to the reserves in January-October. Growth in administrative spending and reduction of revenue from trade by almost 83% also affected the banks' figures.

Net interest income as of November 1, 2016 was UAH 38.1 billion, and this was 10.2% down year-over-year.

"It is explained by the decline in interest revenue. However, there is an upward trend: interest spending is permanently decreasing thanks to the cheapening of the banks' resource base, mainly the funds of the public," the NBU said.

Net commission fee revenue grew by 12.9% year-over-year, to UAH 20.4 billion.

A total of 65 banks saw profit of UAH 9.6 billion, including 66 banks in October – UAH 1.1 billion.

As of November 1, 2016, 35 operating banks saw loss of UAH 22.2 billion, and 83.4% of the sum is the loss of six banks with foreign capital. In October loss of UAH 2 billion was recorded at 34 banks.

The central bank said that in general the loss of all Ukrainian banks in January-October 2016 totaled UAH 54.5 billion.